Maltapost bids to face up to new challenges

As the world marks World Post Day today, Maltapost is seeking ways to tap new markets to make up for losses - foreign mail entering Malta is decreasing by five per cent each year as is mail leaving the island.

Maltapost chief executive Robert Lake said the company was working hard to promote various services which revolved round mail delivery to face up to new competition from digital cameras, MMS mobile phones and e-mail among others.

Tourists were sending fewer postcards and, in an attempt to revive this flagging market, Maltapost is promoting the use of postcard booklets and will soon introduce self-adhesive stamp booklets - a first for the island.

Courier services are among its challenges as is the possibility of using its direct marketing capabilities to help companies target a particular section of professionals through the mail.

Another area it hopes to expand is the service it can offer companies wishing to cut costs on folding and preparing mail packages.

The company is also looking to expand its process of invoice management for clients by producing the bill, preparing the mail, posting it, delivering it, receiving payment and returning it to its client.

Although the need for diversification through banking was discussed at a recent conference for postal company CEOs in the Mediterranean, Mr Lake believes this sector in Malta is saturated. So, instead, Maltapost is setting its sights on encouraging more people to pay their bills at one of its 30 branches and is in discussion with the government to attract more payments to its offices.

To facilitate the whole process of bill payments and step up its services on offer, Maltapost has invested Lm120,000 in a retail network to automate all its branches.

"We want to be more efficient to take on more bill payments and offer services such as selling concert tickets," Mr Lake said.

The retail automated system is being designed by Maltese suppliers and Mr Lake heaped praise on the team, saying Malta had many capable people in software development.

On the subject of registered mail, Mr Lake said the company was toying with the idea of offering its own insurance on certain items or packages. Recently the ombudsman had urged Maltapost to make it clear to clients that they should insure articles of significant value even when using registered post.

It seemed that many assumed that registered mail also meant it was insured but Mr Lake said it was obvious that present standard rates for a registered item did not include insurance.

Maltapost is also in talks with Customs so that it could clear packages on behalf of its customers and deliver them. The company has decided to remain at its present premises in Qormi despite previous talk of possibly moving to a site in Luqa.

"We have concluded that properly modifying our present premises was a more attractive option to us. Maybe we can use Luqa for business opportunities in the future," Mr Lake said.

Despite its successes and challenges ahead, it was not a smooth ride for Maltapost in the past year. The company and the unions were constantly at loggerheads after Maltapost said it had a surplus of 266 workers, which would hinder its restructuring plan.

The government had stepped in and committed itself to resume responsibility for 160 ex-government employees, an offer which was taken up by 133. The remaining employees have now been offered the opportunity to move to one of the government's range of entities.

"Despite the few scraps we had with the unions, I have to say that looking back there was a high level of cooperation," Mr Lake said.

Maltapost is now looking ahead to becoming profitable by next year and hoping to break even in this financial year, despite a registered loss of Lm83,000 last year.